Civeo Announces Conditional Award of Four Contracts for Coastal GasLink Pipeline Project in Canada
July 05 2018 - 4:30PM
Civeo Corporation ("Civeo" or the "Company") (NYSE:CVEO), one of
the largest global providers of workforce accommodations, logistics
and facility management services to the natural resources industry,
announced today that it has been awarded contracts to supply
accommodations for four locations along the Coastal GasLink
pipeline project in British Colombia, Canada. The Coastal
GasLink pipeline project is an approximately 670-kilometre pipeline
from the Dawson Creek area to the west coast of B.C. The proposed
pipeline will transport natural gas to the proposed LNG Canada
facility near Kitimat. These contracts are subject to a positive
final investment decision (“FID”) from the LNG Canada joint
venture; the timing of the FID is expected later in 2018.
The accommodation facilities are collectively expected to reach
total peak room count of over 2,000, and revenue for the full-term
of the contract is expected to be approximately C$100 million over
2019-2021. Civeo will partner with a First Nation for each facility
through its network of leading First Nation and community
partnerships.
Bradley J. Dodson, Civeo's President and Chief Executive
Officer, stated, “We are pleased to announce these contract awards,
solidifying our position as the partner of choice for workforce
accommodation solutions in Canada. The strength of our First Nation
relationships was critical to these awards, and we look forward to
collaborating with our partners to provide best-in-class
accommodations along the Coastal GasLink pipeline project. Along
with our recent acquisition of Noralta Lodge, this contract is a
testament to our continued growing presence across Canada.”
Civeo expects to deploy approximately C$10 million in capital,
primarily in 2019, across all four facilities, which will include
maintenance to existing assets, new site service equipment and a
limited number of new modular assets.
About Civeo
Civeo Corporation is a leading provider of workforce
accommodations with prominent market positions in the Canadian oil
sands and the Australian natural resource regions. Civeo offers
comprehensive solutions for housing hundreds or thousands of
workers with its long-term and temporary accommodations and
provides catering, facility management, water systems and logistics
services. Civeo currently operates a total of 30 lodges and
villages in operation in Canada and Australia, with an aggregate of
more than 32,000 rooms. Civeo is publicly traded under the symbol
CVEO on the New York Stock Exchange. For more information, please
visit Civeo's website at www.civeo.com.
Forward Looking Statements
Statements included in this release regarding the conditions to
the Coastal GasLink contracts, including the timing of the FID,
Civeo’s expected benefits of, and capital expenditures associated
with, the Coastal GasLink contracts, and other statements that are
not historical facts are forward-looking statements (including
within the meaning of Section 21E of the Securities Exchange Act of
1934 and Section 27A of the Securities Act). Forward-looking
statements include words or phrases such as “anticipate,”
“believe,” “contemplate,” “estimate,” “expect,” “intend,” “plan,”
“project,” “could,” “may,” “might,” “should,” “will” and words and
phrases of similar import. The forward-looking statements included
herein are based on current expectations and entail various risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied by these forward-looking
statements. Risks and uncertainties with respect to any
forward-looking statement included herein also include, among other
things, risks associated with the ability of Civeo to implement its
plans, forecasts and other expectations with respect to the Coastal
GasLink contracts, and other factors discussed in the “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” and “Risk Factors” sections of Civeo’s annual report on
Form 10-K for the year ended December 31, 2017 and other reports
Civeo may file from time to time with the U.S. Securities and
Exchange Commission. Each forward-looking statement contained in
this report speaks only as of the date of this release. Except as
required by law, Civeo expressly disclaims any intention or
obligation to revise or update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contacts:
Frank C. Steininger Civeo Corporation Executive Vice
President and Chief Financial Officer 713-510-2400 Jeffrey Spittel
FTI Consulting Inc. 832-667-5140
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